India has jumped 23 spots to 77th rank in World Bank's 'Ease of doing business' index announced on Wednesday. In 2017, India was placed at the 100th spot.
The ranking comes as a shot in the arm for the Narendra Modi government which faces strong dissenting voices from opposition parties ahead of the general elections next year.
"Delighted at yet another rise in India’s ‘Ease of Doing Business’ rank. We are unwavering in our commitment towards economic reforms, which will ensure an environment that fosters industry, investment and opportunities," PM Modi tweeted.
"When we came to power the PM had said that we have to come within the top 50 ranks. Today, we are at Rank 77. DIPP has worked on how to up the ranking on each criterion. You have to crack the code & try and improve on the criterion in which we lack," Finance Minister Arun Jaitley told reporters in New Delhi.
"With all uniform construction bye-laws, from 184 in 2014 ranking we have jumped up by 129 points to 52. This is the largest single jump. It was a big corruption issue. But there has been a record improvement in ranking," Jaitley said.
In its annual report 'Doing Business' 2019 report, World Bank said India improved on six of the 10 parameters relating to starting and doing business in a country.
These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.
India was ranked at the 142nd position among 190 nations when the Modi government came to power in 2014. It rose to 100th spot in the last ranking from the 131st rank in the previous year.
New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong.
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The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136. World Bank put India among the top 10 economies to make the most improvements.
'India one of the top reformers'
India, which jumped more than 50 spots in the ease of doing business ranking in just two years, has emerged as one of the top reformers, World Bank officials said, but cautioned that entering the top 50 bracket is tough as the next set of reforms is difficult.
In the coming years, India could very well improve its ranking further given that the impact of some of the ongoing reforms has not been fully realised or captured yet, they said.
At the same time, they cautioned that entering the top 50 bracket – a goal set by Prime Minister Narendra Modi in 2014 – is a tough nut to crack, even though at this point of time, it no longer seems to be impossible for India.
"India is one of our top reformers, one of our top 10 performers. It was also on the top 10 list last year.. two years in a row, which is sometimes very difficult to do," Shanta Devarajan, the World Bank's Senior Director for Development Economics and Acting Chief Economist, told PTI in an interview.
WATCH: India jumps to 77th position in 'Ease of Doing Business Index'
(With inputs from PTI)